Chapter One-Introducing Business Flashcards
What is a business?
A business is an organisation that provides goods and/or services to consumers in order to make a profit.
What are finished goods?
Finished goods are those that are ready for customers to buy and use.
What is a profit?
A business makes a profit when the income earned (revenue) is greater than the costs of production (expenses).
What is a For Profit Organisation?
An organisation who’s objective is to make a profit
What is a Not-for-Profit Organisation?
And organisation who’s main objective is to provide social, educational or religious benefits.
What is Market Share?
Market share refers to the business’s share of the total industry sales for a particular product.
What is a Multinational Corporation?
A multinational corporation (sometimes referred to as a transnational corporation) is a company that has branches in many different countries.
What is an objective?
An objective states what an organisation expects to achieve over a set period.
What are Financial Objectives?
Financial objectives are objectives that organisations make in regards to profit.
What are Social Objectives?
Objectives that benefit the community.
What are Personal Objectives?
Objectives that the business owner tries to accomplish in their business.
What is Economy
An economy is a system set up to determine what to produce, how to produce and to whom production will be distributed.
What is Economic Growth?
Economic growth occurs when the real value of goods and services increases over a set period of time.
What is GDP?
Stands for Gross Domestic Product, the total market value of all final goods produced by a country over a set period of time.
What is Export?
The sale of goods and services to another country.
What is Import
Import is buying goods and services from another country.
What is a Business Environment?
The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.
What is an Internal Environment?
The internal environment, sometimes called the micro environment, includes those factors over which the business has some degree of control.
What is an External Environment?
The external environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.
What is Corporate Culture?
The corporate culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time.
What is a Policy?
A policy is a general guide to help employees deal with recurring situations.
What is an Operating Environment?
A business’s operating environment, sometimes called the task environment, refers to the specific outside stakeholders with whom the business interacts in conducting its business.
What is a Stakeholder?
A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.
What is a Supplier?
A business’s suppliers are those organisations and individuals that supply the resources that the business needs to conduct its operations.
What is Competition?
Competition is rivalry among businesses that seek to satisfy a market.
What are Competitors?
Competitors are businesses that offer rival products or services.
What is a Sustainable Competitive Advantage?
A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.
What are Interest Groups?
Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
What is a Macro Environment?
The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.
What is Workplace Diversity?
Workplace diversity means the multitude of individual differences that exist among people in the workplace.
What are Business Ethics?
Business ethics is the application of moral standards to business behaviour.
What is Socially Responsible Management?
Socially responsible management is managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making business decisions.
What are Stakeholders?
Stakeholders are individuals or groups with an interest in the success of the business.
What is a Conflict of Interest?
Conflict of interest occurs when a person takes advantage of a situation or piece of information for his or her own gain rather than for the employer’s interests.
What is Corruption?
Corruption is a lack of honesty or integrity; using a position of trust or authority to receive favours, often financial bribes.
What is a Code of Conduct?
A code of conduct is a set of ethical standards by which managers and employees should abide.
